RBI imposes monetary penalty on The Hirasugar Employees’ Co-operative Bank Limited, Belagavi, Karnataka

Case Brief

By an order dated June 21, 2024, RBI imposed a monetary penalty of ₹25,000 on The Hirasugar Employees’ Co-operative Bank Limited, Belagavi, Karnataka. The action was taken after a statutory inspection and subsequent supervisory process found non-compliance with RBI’s directions on ‘Exposure Norms and Statutory/Other Restrictions − UCBs’. RBI said the bank failed to adhere to prudential inter-bank (gross) and counterparty exposure limits, and the charge was sustained after the bank’s reply and oral hearing. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.